There is a long-standing myth about the real estate industry that realtors should remain silent when appraisers become involved in the process. In reality, there is a risk that an appraiser might say something inappropriate and end up facing undesirable consequence, but realtors should often become involved anyway. This is because appraisers plays a vital role in property transactions.
It is particularly important for both a buyer and seller of property that an appraiser provides an independent, impartial, and objective opinion that reflects the current state of the market.
The following reviews some of the important details that realtors should understand about interaction with appraisers and the value that appraisers can provide.
Realtors can be of Value to Appraisers
Realtors can provide appraisers with important details that help them to properly approximate the value of property. Many companies even encourage their appraisers to actively communicate with realtors.
For example, a realtor might include details about the proposed property transaction including terms of sale or information about any recent renovations to a home that might have impacted its value. Other times, it might be appropriate to provide an appraiser with records of property maintenance. All of this information can help an appraiser perform his or her job as accurately as possible.
Avoid Inappropriate Types of Comments
Realtors must avoid any type of communication with appraisers that is intended to unduly influence the appraisal. In addition to any type of direct communication of coercive statements, realtors should also make sure to avoid any statements that could end up being misinterpreted as such.
For example, realtors should not force an appraiser to return an estimate that matches the asking price of a home. Realtors should also avoid any promises to appraisers based on the outcome of a certain appraisal.
There is No Date at which Communication Must End
Appraisers and realtors do not have a date at which they are no longer able to communicate with one another. Instead, if an agent has questions or concerns about a report after receipt of the appraisal, it is permissible to communicate with the appraiser. This means that it is possible to submit comparable sales for the appraiser to consider. Other times, brokers request that an appraiser correct any errors in a report.
Appraisers might also be asked to provide additional information about how a valuation was reached. Realtors, however, are generally prohibited from expressing unhappiness with the outcome of an appraisal.
Speak with an Experienced Property Lawyer
Appraisers play an important role in the property transaction process. To adequately perform their job, however, appraisers must be competent and provide credible opinions about the value of the homes. Communication between a realtor and appraiser, however, can be challenging. In addition to this issue, there are a number of complex obstacles that can arise during the purchase of property.
If you need the assistance of an experienced property law attorney, do not hesitate to contact Adam Law Group today.